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Monday, May 20, 2013

That's the news

I knew things were bad in France, but I couldn't believe this headline. I thought there had to be a gimmick. But no, it's for real. The only "gimmick" is that it's supposed to be a one-time thing. I'm not sure why there are any rich people left in France, or any business for that matter. Why would anyone want to stay and be taxed at even 75%?

"France remains the fifth economic power in the world, the fourth in terms of foreign investment. It's one of the best places for technology, for trade," Fabius said, answering a question about whether France remains a friendly place for business.

It seems to me that if you have to say your country is business friendly, then maybe you need to reevaluate your definition of friendly. To be fair, though, it appears that France has been backtracking on some of its tax increases on wealthy individuals and business. But that doesn't make them business friendly exactly. It seems kind of like kids, who will do just enough to keep their parents from getting mad and saying no when the kids want to do something, but nothing more. I don't call that friendly. But then, maybe this is the future of the world. No real incentive to take the risk of starting a business, no incentive to innovate. So, no matter how much you love business, it just won't be there.

The memo attacks France's increasing labor costs and minimal investment in research and development. It notes that France has the "second-shortest working year" in the European Union and its tax load is "the highest within the euro zone."

This makes me wonder just how long France will remain the "fifth economic power in the world," etc. as was stated in the previous article.

Galaris said amateur investors sometimes spend all their free cash on their purchases and then have to scramble to pay the fees. If real estate turns south again, that could leave a lot of investors in dire financial condition for their golden years.

Nah. This time it's different. Perhaps one of the most troubling lines in this article is this one:

"Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties," he said. "After 2008, they didn't trust Wall Street. They wanted hard assets."

They didn't trust Wall Street? Okay, they never should trust Wall Street. Everyone there is out to get as much of your money as they can. But, seriously, didn't these people hear about the collapse in real estate?

Disclaimer

I am not a registered investment advisor or broker. Blog posts are my own opinion, derived in good faith from public information believed to be accurate at the time of posting. No warranty is made regarding the accuracy or completeness of information contained herein. Market Dissection posts are provided for informational purposes only. Before you invest in any security, you should conduct your own research and due diligence, and seek the advice of a qualified investment professional.